Three markets to watch next week (05.05.2025)

4:03 PM 2 May 2025

The key event of the upcoming week will be the Fed’s decision on U.S. interest rates. Nevertheless, tariffs and corporate earnings season on Wall Street are expected to remain hot topics. For this reason, it will be worth monitoring instruments such as EURUSD, GOLD, and Bitcoin.

EURUSD

The U.S. dollar remains weak amid concerns about an economic slowdown and the trade war initiated by the Trump administration. However, a hawkish stance from the Fed at Wednesday’s meeting could support the USD. Currently, investors are pricing in a nearly 98% chance that rates will remain unchanged. In the coming week, we will also hear from several FOMC members, including Jerome Powell. As a result, volatility in the dollar could be high.

US500

So far, U.S. corporate earnings have not disappointed investors. Solid reports have supported major indices like the US500 and US100. A 12.9% y/y increase in earnings alongside just a 4.5% rise in revenues points to a significant improvement in operating margins for American corporations. The 74.5% beat rate suggests analysts have consistently underestimated companies’ adaptability amid the ongoing tariff war. In this context, further earnings releases may continue to support a rebound in the US500.

Bitcoin

Improved sentiment on Wall Street is also supporting the mood in the cryptocurrency sector. In addition, several recent developments have been fundamentally positive — such as Trump’s involvement in the stablecoin sector, strong institutional demand, and the appointment of a new pro-crypto SEC Chairman, Paul Atkins. Bitcoin has already rebounded nearly 30% from its lows, and the approach toward the $100,000 level could act as a catalyst for a volatility spike.

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